Jeonju pushes disaster income benefit plan to counter coronavirus damage

Posted on : 2020-03-11 18:53 KST Modified on : 2020-03-11 18:53 KST
City’s mayor makes emergency proposal to city council
Jeonju Mayor Kim Seung-soo proposes a basic disaster income plan to the city council on Mar. 10. (provided by the city of Jeonju)
Jeonju Mayor Kim Seung-soo proposes a basic disaster income plan to the city council on Mar. 10. (provided by the city of Jeonju)

On Mar. 10, the city of Jeonju, North Jeolla Province, announced that it is introducing disaster income benefits as a measure to overcome losses associated with the novel coronavirus.

Speaking before the Jeonju City Council that day, Mayor Kim Seung-soo made an emergency proposal to “provide 500,000 won (US$418.04) each in support to 50,000 unemployed persons, irregular workers, and other individuals who have been economically inactive due to the coronavirus.” The plan, which is based on a city ordinance for livelihood stability support to low-income residents, would involve paying money directly to citizens who are facing difficulties making ends meet amid falling incomes due to the disaster. If the council does finalize the plan following its review through Mar. 13, it will be the first such system nationwide.

The targets of the plan are around 50,000 unemployed persons, irregular workers, and others disenfranchised persons. Stipends would be issued simultaneously in April in the form of check cards with local banks, and recipients would be required to spend their stipends within Jeonju city limits within a three-month period. Eligibility would not be extended to small business owners receiving support through other systems or those entitled to unemployment benefits. To implement the system, the city presented the council with an initial supplementary budget amounting to 54.3 billion won (US$45.4 million), including 25 billion won (US$20.9 million) for disaster income benefits.

Also included was a plan for revitalizing the local economy through stipends of 600,000 won (US$501.73) each (for a total of 13.4 billion won, or US$11.21 million) in electricity and other public utility to microbusinesses that have struggled with personnel expenses and other fixed costs amid dwindling sales. The plan additionally contains support for the tourism industry, which has faced dwindling sales, and assistance for small businesses.

“The people who suffer the most when economic crisis strikes are those stuck in blind spots that are excluded from government assistance, including low income earners and other vulnerable populations,” Kim Seung-soo said.

“We will do our best to overcome these difficulties, including providing 500,000 won [US$418.02] each in basic disaster income benefits to 50,000 people so that irregular workers, part-time workers who are just getting by, and other people facing a steep drop in income can continue surviving,” he added.

By Park Im-keun, North Jeolla correspondent

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